On 5 March 2021, The Stock Exchange of Hong Kong Limited (HKEx) published a Guidance Letter HKEX-GL110-21 on pre-vetting for placings to connected clients in initial public offerings (IPO).
In order to avoid potential delay in the listing timetable and facilitate timely submission of consent applications, lead brokers and distributors (“Distributors”) are encouraged to submit the consent applications with all relevant information for HKEx’s review after the publication of the listing applicant’s post-hearing information pack.
The Guidance Letter (i) elaborates on why Distributors are encouraged to submit a pre-vetting application for HKEx’s review; and (ii) provides guidance to Distributors on information required for pre-vetting in anticipation of potential placing of securities to connected clients, regardless of whether they are ultimately placed with any securities upon the final allocation of an IPO.